The governor on Wednesday rejected the measure as promised, and said he disagreed with arguments that it was strictly about local control.

The bill would increase the ceiling for local sales taxes to 2 percent, up from the current 1.5 percent lid. Increases would require voter approval. Money not earmarked for tax reductions or other projects would have to go toward public infrastructure and economic development.

But Heineman says cities could easily play a "shell game." He says local officials could funnel the new money into expenses covered by existing tax dollars, which would free up that money to spend as they please.
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